Cotula says there’s a widespread perception in government and investor circles that large plantations are needed to modernize agriculture. But he says there is no evidence to back up these perceptions. Smallholders have often proved dynamic and competitive on world markets, and policy and infrastructure support for smallholders is today more needed than ever.

According to Cotula, where outside investment is necessary to sustain agriculture, there are various models for collaboration between local farmers and investors, depending on the history, culture, and traditions of land ownership of the area.

Contract farming

One popular method is contract farming, which is often used with tree and cash crops and sometimes with fruit and vegetables.

"It has been around a long time," said Cotula, "and usually involves companies providing credit, inputs like seeds and fertilizer and training and then buying produce from farmers at a fixed price when harvest time comes."

The inputs provided by the companies are usually deducted from the final purchase price. The quality and quantity of the produce are agreed upon by the farmers and the companies.

Cotula says contract farming accounts for up to 60% of tea and sugar farming in Kenya and 100% of cotton farming in Mozambique. In Ghana, it’s used by companies like Blue Skies Agro-Processing, which processes fresh fruits like pineapple, mangos and watermelon for the European market.

Benefits and drawbacks

Contract farming has many benefits, enabling farmers to gain access to credit, seeds and technologies. Contract farming may also give smallholders more access to lucrative but remote markets for high-value crops.

But there are also drawbacks to contract farming. Cotula’s research reveals contracts often go to wealthier farmers, while poorer ones work as labor on the contracted farms. The price that companies pay to farmers may be low, and it may be difficult to penalize a company for not honoring purchasing agreements when market conditions change.

Also, growers may become locked into debt when the company deducts payments for inputs from the final purchase prices. Contract farming may also shift land access away from women, who grow subsistence crops, to men, who are more likely to sign contracts for cash crops with agribusinesses.

Joint ventures

Another model that has been used for partnerships between small farmers and investors is joint ventures, such as one in Rwanda between smallholders and the private company, the Nshili Tea Corporation. Another in Mozambique gives local landholders a 60% stake in an eco-tourism lodge in Manica province.

"[Joint ventures] involve local groups acquiring an equity stake in a company that runs agricultural production," explained Cotula. "Production could be undertaken by farmers on the basis of contract farming arrangements with the joint venture company. Or it could be like in Malaysia, where joint venture schemes usually involve establishing a large plantation with the local community having equity participation and receiving dividends – which however don’t always materialize."

Cotula says an equity stake in the business can give communities a voice in decision making and a steady income in the form of dividends.

On the other hand, he says, dividends may not materialize because of practices by the companies linked to the agribusiness. One, called “transfer pricing,” transfers profits by artificially inflating or deflating prices in transactions with companies linked to the agribusiness joint-venture partner. The practice reduces profits for the joint-venture company and dividends for smallholder partners. As a solution, contracts may require sales to affiliates take place at fair market prices.

Cotula has also studied other business models that involve collaboration with smallholders, including tenant farming and sharecropping.

Smallholder participation

The success of all of them often depends on the strength of local farmers’ organizations. He says it’s helpful if smallholders form cooperatives or unions or have the support of NGOs.

Cotula describes the case of sugar cane farmers in East Africa, where government-run processing plants have been privatized.

"As growers got organized into an association independent of the business," said Cotula, "they got a better deal in business terms…they also acquired greater voice in industry – like the setting of government policy. So, the level of organization, the capacity in the organization that represents the concerns and aspirations of farmers is crucial."

Research on large-scale land acquisitions shows that many contracts favor the investor: some are short and unspecific and do not include important clauses that protect the small farmer. They may also guarantee leases of between 50 and 99 years, leaving local people without land and livelihoods for generations.

Better practice

Better practice features mechanisms to monitor or enforce investor commitments, clarify the distribution of government revenues, specify the number and types of jobs that will be created, and balance exports with local food needs. It also includes promoting greater transparency.

Cotula’s research showed that Liberia is an example of better practice in that the government has made contracts publicly available on the web. Some contracts negotiated by Monrovia featured more specific commitments to jobs and training, local processing and procurement, and social and environmental safeguards.

Inclusive models for agricultural investment are an important part of efforts to reach the U.N.’s Millennium Development Goals, which include significant reductions in poverty and hunger, environmental sustainability, and the creation of effective partnerships to enhance development.

At this year's annual South by Southwest film and music festival in Austin, Texas, some musicians from Mali were on hand to promote a film about how their lives were upturned by jihadists who destroyed ancient treasures in the city of Timbuktu and prohibited anyone from playing music under threat of death. As VOA’s Greg Flakus reports from Austin, some are afraid to return to their hometowns even though the jihadists are no longer in control there.

Video

At this year's annual South by Southwest film and music festival in Austin, Texas, some musicians from Mali were on hand to promote a film about how their lives were upturned by jihadists who destroyed ancient treasures in the city of Timbuktu and prohibited anyone from playing music under threat of death. As VOA’s Greg Flakus reports from Austin, some are afraid to return to their hometowns even though the jihadists are no longer in control there.

Video

American warplanes joined Iraq's battle against the so-called 'Islamic State' in northern Iraq late Wednesday, as Iraqi ground troops launched a massive assault on Tikrit. Analysts say the offensive could take the coalition a step further towards Mosul, the largest city held by Islamic State forces. Others say it could also deepen already-dangerous sectarian tensions in the region. VOA's Heather Murdock has more from Cairo.

Video

Tourism is a multi-billion dollar industry in the Philippines. Close to five million foreign visitors traveled there last year, perhaps lured by the country’s tropical beaches. But Jason Strother reports from Manila that the country hopes to entice more travelers to stay indoors and spend money inside new casinos.

Video

The continued fighting in eastern Ukraine and the shelling of civilian neighborhoods seem to be pushing more men to join the separatist fighters. Many of the new recruits are residents of Ukraine made bitter by new grievances, as well as old. VOA's Patrick Wells reports.

Video

Islamic State fighter, a prisoner of Kurdish YPG forces, asked his family asking for forgiveness: "I destroyed myself and I destroyed them along with me." The Syrian youth was one of two detainees who spoke to VOA’s Kurdish Service about the path they chose; their names have been changed and identifying details obscured. VOA's Zana Omer reports.

Video

More is being discovered about the co-pilot in the crash of Germanwings Flight 9525 in the French Alps. Investigators say he was hiding a medical condition, raising questions about the mental qualifications of pilots. VOA's Carolyn Presutti reports.

Video

In cities with heavily congested traffic, people can get around much faster on a motorcycle than in a car. But a rider who is not sure of his route may have to stop to look at the map or consult a GPS. A Russian start-up company is working to make navigation easier for motorcyclists. Designers at Moscow-based LiveMap are developing a smart helmet with a built-in navigation system, head-mounted display and voice recognition. Zlatica Hoke has more.

Video

U.S. federal law enforcement agents arrested two suburban Chicago men accused of trying to join ISIS overseas, while also plotting attacks in the United States. As VOA’s Kane Farabaugh reports from the Midwest state of Illinois, one of those arrested is a soldier of the Illinois National Guard.

Video

Traditional push-rim wheelchairs create a lot of stress for arm, shoulder and neck muscles and joints. A redesigned chair, based on readily available bicycle technology, radically increases mobility while reducing the physical effort. VOA’s George Putic reports.

Video

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.

Video

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.

Video

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.